Republican state Rep. Cheri Gerou hates the “raids” on state cash funds that Gov. Bill Ritter has used to balance the budget over the past several years.

But Gerou, now a member of the legislature’s Joint Budget Committee, said she might have to vote to allow it again.

“I can be concerned about cash funds,” said Gerou, R-Evergreen, “but this is probably not the year to be able to do anything about it.

“Right now, we may not have any other choice.”

Gerou and the four other new appointees to the six-member JBC started getting acquainted with some sobering realities last week as the newly minted panel kicked off hearings on Ritter’s proposed 2011-12 budget.

To bridge a budget gap expected to be as much as $1.1 billion, Ritter is proposing one-time actions ranging from cuts in take-home pay for state workers to a cut in higher-education funding. His plan also includes more than $100 million in transfers from cash funds.

Cash funds are pots of money generated by fees for specific services provided by the state, such as licensing drivers. They can also be funded by specific taxes, such as severance taxes on oil and gas production.

These cash funds often build up balances that are above what is necessary to operate the programs for which they are specifically intended. Ritter and lawmakers have now used on the order of $1 billion in cash funds over the past several years to keep the budget balanced.

Republicans have likened the process to increasing taxes without a vote of the people, something that would violate the Taxpayer’s Bill of Rights in the state constitution. But the Colorado Supreme Court in 2008 said lawmakers could tap cash funds to help balance the budget.

And when Republicans were in control of the legislature in the last recession, they used more than $1 billion in cash funds to balance the budget, so Democrats aren’t doing anything new.

With Republicans in control of the House again after six years in the minority, they will have the chance to put into action their solutions to balance the budget. Because they control one chamber, it means there is a 3-3 party split on the JBC. Both sides may have to compromise.

Still, new JBC members are optimistic they can find some middle ground.

“I’m very optimistic that at the end of the day, people are going to make very pragmatic decisions and understand there’s going to be unpopular things that have to happen,” said Sen. Pat Steadman, D-Denver, another new JBC member.

“I’m not feeling at this stage of the game that anybody’s thrown up any roadblocks or is being close-minded to any options.”

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